CHA News Article

Fitch Ratings Releases 2015 Outlook on U.S. Nonprofit Hospitals and Health Care Systems

Fitch Ratings Inc. has released its 2015 Outlook on U.S. Nonprofit Hospitals and Healthcare Systems, maintaining its negative sector outlook for nonprofit hospitals and health care systems in 2015. The company reports its negative outlook reflects ongoing uncertainties surrounding the implementation and legality of key provisions of the Affordable Care Act (ACA) and continued movement toward value-based reimbursement models. However, Fitch Ratings is maintaining its stable credit rating outlook for the sector, as it expects hospitals and health systems it rates to maintain adequate profitability, despite continued pressure on reimbursement, softening inpatient volumes and ongoing challenges to the validity and legality of key ACA provisions.

Key issues addressed in the Fitch Ratings outlook include:

  • Continued pressure on patient volumes
  • Reimbursement challenges
  • Continued uncertainty related to health care reform
  • Management strategy
  • Consolidation, integration and alignment strategies

The full report is attached.